Chapter 75: Chapter 19: Get rich? Start by Misappropriating
Franz felt a national duty. To raise war funds for the Kingdom of Prussia, this emperor took the lead in donating one million shillings, which were deposited in the Austrian Royal Bank.
(1 shillings ≈ 11.69 grams of silver)
Soon, Austrian nobles, businessmen, students, and others rushed to donate. However, these funds were not directly given to the Prussian government but were deposited in the Austrian Royal Bank.
Yes, this Austrian Royal Bank was a new venture initiated by Franz. Its primary business at present is to collect donations from the public, while overseeing that this money is used for the defense of the Duchy of Schleswig-Holstein. Now, with the Prussian army sweeping across the Jutland Peninsula, it has crossed this boundary, and it no longer satisfies the conditions for the use of these donations.
Franz doesn't care what the Prussians think; he is currently very pleased. The Royal Bank, with a registered capital of just one million shillings, attracted nearly thirty million shillings in donations in just a month. These aren't deposits, but donations.
However, the bank issued receipts to donors, and all donations were to be used proportionally. If not all funds are used, the remainder will be returned.
To demonstrate his patriotic integrity, the Royal Bank didn't even charge a basic fee; it was entirely free service.
Since it's a donation, no interest is involved. Before this huge sum was used, Franz had additional liquid funds.
Holding a large amount of cash and doing nothing with it is a crime. So, Franz took out a loan for himself, invested in a comprehensive food company, and also bought many high-quality mines.
In those days, gold and silver could directly act as currency. Thus, gold and silver mines were very valuable. Even for an emperor like Franz, it wasn't easy to obtain. On the other hand, iron, coal, lead, zinc, manganese, rare earth, and other minerals were much cheaper. The Industrial Revolution was still underway, and the consumption of basic coal and iron was very limited. Many rare minerals weren't even used by the industries at the time.
Franz wanted to take advantage of the current low value of these resources and secure valuable minerals for the future.
Unfortunately, the Austrian Empire didn't have vast mines, otherwise, with this move, he could have secured wealth for a lifetime.
In short, with money in hand, he started investing everywhere. Others considered transportation when investing in mines, but Franz only cared about the quality and reserves of the minerals. He knew the Austrian government would invest heavily in infrastructure soon.
Currently undeveloped mines would increase in value once roads reach them. Along with industrial progress and increased demand for minerals, it'd be hard not to get rich.
In just over a month, he spent more than 5.8 million shillings, which startled Franz and made him hold back. There should be a limit to misappropriating public funds, right? If he spent all of it and got caught, how would he reconcile it later?
The Habsburg family had assets, but not so much liquid cash. Even as an emperor, it'd be hard for Franz to borrow so much cash in a short time.
However, if he only misappropriated a portion, he could balance the accounts, especially since he owned a bank. If it weren't for the current shortage of manpower, the Royal Bank would have already expanded its reach.
A bank with thirty million in funds was a giant in those times. In terms of cash flow, it was definitely the largest bank in Austria and one of the top banks worldwide.
Currently, the Austrian Royal Bank only had over thirty branches, mainly in Austria's major cities.
Johann Stewa was originally an executive at Austria's first savings bank but was poached by Raul to serve as the first banker of the Royal Bank.
Only now did Franz realize that the Habsburg family had shares in many banks. How they came about them, he didn't care to know.
After all, behind every bank were backers; otherwise, it wouldn't have been easy to survive in those days, or even earlier times.
"Your Majesty, the Royal Bank is ready and can start accepting deposits," Johann Stewa said nervously.
"As for the bank's matters, you're the professional. The management can decide on these matters. For now, the Royal Bank won't provide loans to outsiders," Franz said expressionlessly.
He had misappropriated a huge sum, and it needed to be returned. Who knows how long the Prussians can hold on? Once the Prussian government compromises, the money must be refunded.
"Yes, Your Majesty," answered Johann Stewa.
"How much of these donations do you estimate can be converted into our depositors? How much money will be left?" Franz inquired.
"Your Majesty, our bank interest rates are set based on the average level, but the Royal Bank's reputation far exceeds any competitor. About 20% of donors will become our users, as a third of these donations come from the government. The remaining funds will be around three million shillings," Johann Stewa pondered.
Don't assume that three million shillings is a small amount. In this era, people did not have the habit of depositing money in banks. Most nobles preferred to stash their gold coins in their basements.
There's a threshold to opening a bank account. For instance, the Royal Bank's threshold is set at 150 shillings. If you're below this amount, sorry, this place isn't for you.
In 1848, the total savings of the entire Austrian Empire didn't even reach 100 million shillings. Being able to retain three million shillings would constitute over 3% of Austria's total savings.
Franz had considered lowering this account-opening threshold. However, given the need for many more counter staff, increased management complexity, and operational costs, he decisively abandoned the idea.
Banks also have their prestige. In this era, those who frequent banks are from the middle to upper echelons of society. If restrictions were removed and many from the lower class flooded in, the bank would regret it if these high-quality clients left.
Austrians were quite poor. Saving ten or more shillings a year would be considered decent income. Given this backdrop, rashly conducting this business had a high likelihood of resulting in a loss.
"I understand. After you return, commence the deposit business as soon as possible. All business representatives must undergo rigorous training, requiring everyone to courteously attend to every client," Franz instructed.
"Yes, Your Majesty," Johann Stewa replied.
During this period, the attitude of bank service personnel wasn't bad, because due to the account opening amount limitation, those who could transact with the bank were generally the middle class or even higher.
There was no sense of superiority among bank employees, so discrimination was virtually non-existent.
Furthermore, it's a private bank. Everyone's performance mattered; those who performed well would be promoted, while those who didn't meet the mark would be let go. Daydreaming wouldn't help!
Franz was deeply concerned. Now, he had a gap to fill.
The Habsburg family couldn't casually produce millions of shillings in cash. The Royal Bank was his private property, and Franz didn't want outsiders meddling in its affairs.
Currently, the Royal Bank wasn't lending externally. It wasn't that Franz didn't want to do this business; he just didn't dare. If the Prussians caved in tomorrow, he'd immediately face a peak in withdrawals.
These donations were promised by the Royal Bank for specific use. If they couldn't provide the funds and it got leaked that they were misusing donations, the damage to their reputation would be immense.
Keeping this a secret was impossible. No one had blown the whistle because Franz was the emperor, and no one dared to be the whistleblower.
Moreover, they didn't know how much money Franz had diverted. If the amount was small, covering up the deficit wouldn't be difficult. If anyone falsely accused or tarnished the emperor's reputation, they would face severe punishment.
CREATORS' THOUGHTS 
SusshiRoll
SusshiRoll Check chapter comment for more info.
I could have added it into paragraph comment but not everyone has that turned on, I personally don't, when I read stuff.